Northfield Bancorp (NASDAQ: NFBK) is a community banking company that operates through its subsidiary Northfield Bank, accepting deposits and originating loans primarily in the New York and New Jersey metropolitan area. It makes money on the spread between interest earned on loans and securities and interest paid on deposits and borrowings, with net interest income of $137.4 million in FY2025 against total interest income of $249.1 million. Non-interest income contributed an additional $17.0 million in FY2025. Total deposits averaged $4.05 billion in FY2025, with municipal deposits from New Jersey local government entities representing $988.3 million, or 24.6% of total deposits as of December 31, 2025. The bank funds its balance sheet primarily through retail and municipal deposits, supplemented by FHLB of New York advances and other borrowings. Net income was $796,000 in FY2025, depressed by a non-cash goodwill impairment charge of $41.0 million recorded in the fourth quarter of 2025.
- Revenue model
- Net interest income is the primary revenue source, generated by the spread between interest earned on loans and investment securities and interest paid on deposits and borrowed funds. Non-interest income, totaling $16.95 million in FY2025, provides secondary revenue. The bank is deposit-funded, with total average deposits of $4.05 billion in FY2025 at a weighted average cost of 1.95%.
- Products and services
- Deposit products include non-interest bearing demand accounts, NOW and interest-bearing demand accounts, money market accounts, savings accounts, and certificates of deposit. Lending products include commercial real estate loans (totaling $911.4 million as of December 31, 2025, concentrated in office buildings, mixed-use, retail, and warehouse properties), as well as other loan categories. The bank also maintains investment securities portfolios and unused lines of credit to borrowers totaling $316.3 million as of December 31, 2025.
- Customers and end markets
- Customers include individual consumers, businesses, and municipalities. Municipal deposits from New Jersey local government entities totaled $988.3 million, or 24.6% of total deposits as of December 31, 2025. Commercial real estate borrowers span property types including office buildings, mixed-use, retail, warehousing, healthcare facilities, manufacturing, and hospitality.
- Value-chain role
- Community bank and deposit-taking institution operating as a direct lender and deposit custodian. Funds lending and securities activities through retail deposits, municipal deposits, brokered deposits, FHLB of New York advances, repurchase agreements, and other borrowings.
- Geographic exposure
- Primary operating footprint in the New York and New Jersey metropolitan area. Commercial real estate loan portfolio as of December 31, 2025 was 53% concentrated in New York and the remaining balance largely in New Jersey.
